Summary

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Fully describe the business's activities?

A franchise nail and body shop is for sale in a busy shopping centre. The shopping centre has a lot of foot traffic daily. This business will suit, but is not necessarily restricted to, a qualified beautician as owner. This franchise has a head office with approximately 53 franchises operating nationally. 60% of the business is hands, feet and nails and the other 40% is body – massages, waxing, facials. This particular franchise, unique to itself, has a loyalty card system in place and has a big client base currently. The loyalty system is incentive based and can only be redeemed at this store. They have a fantastic POS system designed for this business that keeps track of all clients and staff activity. There is a comprehensive array of lotions, creams, etc for sale from 3 primary houses. They are, Environ (SA) for all races, Dermalogica (USA) and Guinot (French) exclusive to this store. The buyer of this business must be vetted by the Franchisor who will come down to interview the prospective buyer.

How does the business operate on a daily basis?

This business has a very good loyalty card programme and is well positioned in the shopping centre.
The gift cards are redeemable at various sister salons.
They also have a gift card service which holds value for up to 36 months. They do send bulk sms and email to all their clients regarding specials etc.

What competition exists?

Nearest competition is more than 5km away

How could the profitability of the business be improved?

Initiate specials deals and specials packages for students (Varsity area)

Give a breakdown of staff/ functions/ length of service?

5 x permanent staff members
1 x Temp (2 days per week)

Do any have management potential?

Yes, 1 manager appointed

How involved is the Owner in running the business?

The owner is +- 20% involved in the business

When does the current lease end?

There is currently 1.5 years left on the lease agreement.

What are the trading hours?

Mondays to Saturdays 09:00 - 18:00
Sundays 09:00 - 13:00

What are the main assets of the business?

The main assets of the business is the well established clientele (Good will)

Strengths?

Well established and well known name franchise - Top performers in their group
The only beauty shop in the shopping centre. Very little competition
Carry exclusive products no one in the centre can sell - Good loyalty programme
Qualified staff
Lots of walk -in clients